Iran: Urban, Rural Households' Health Expenditure Rises

EghtesadOnline: The average healthcare expenditure of urban and rural families increased by 22.46% and 31.17% respectively in the last Iranian year (March 2018-19) compared with the year before.

News ID: ۷۴۸۷۸۰

22 October 2019

The average healthcare expenses in the Iranian year ending March 2018 were 17.36% and 21.12% higher for urban and rural households compared with the previous year (March 2016-17).

According to the latest report published by the Ministry of Cooperatives, Labor and Social Welfare’s Statistics and Strategic Data Center, Iranian families living in urban areas spent an average of 393,227,000 rials ($3,458) in the last Iranian year (19.3% more than in the preceding year), of which 42,751,000 rials ($376) or 10.87% went for healthcare expenses.

Urban Households

Urban households declared they received an average income of 434,905,000 rials ($3,825) last year, which shows an 18.6% rise compared with the previous year, Financial Tribune reported.

“Food and tobacco” (94,505,000 rials or $831) accounted for 24% of total expenditures, whereas expenditure on “non-food” category stood at 298,772,000 rials or $2,627, accounting for 76% of total spending.

Meat accounted for 21% (the biggest share) of urban households’ expenditures in the “food and tobacco” category. Housing and fuel costs had the lion’s share in non-food category with 45%.

The Statistics and Strategic Data Center divides healthcare expenses into two groups of “personal hygiene and treatment” and “social and medical insurances” costs.

The personal hygiene and treatment costs accounted for 7.57% or 29,759,000 rials ($261) and those of social and medical insurances constituted 3.3% or 12,992,000 rials ($114) of total expenditure of urban families.

Healthcare expenditure of urban households belonging to the 10th income decile, i.e. those with the highest income, and those who were in the first income decile, i.e. those with the lowest income, stood at 145,164,000 rials ($1,276) and 9,430,000 rials ($83), respectively. In other words, urban households in the 10th income decile spent 15.39 times more than those spent by the first decile with the lowest income on healthcare.

For instance, healthcare expenditure accounted for 15.16% of total expenses of families living in urban areas of Isfahan Province last year–the highest portion among Iranian provinces. These costs constituted 6.56% of total expenditure of households living in the urban areas of Kerman–the smallest proportion among Iranian provinces.

Urban households residing in Tehran Province recorded the highest overall annual expenditure with 584,676,000 rials ($5,142) and those living in Kerman had the lowest annual expenditure with 237,415,000 rials ($2,088) last year.

Tehran Province’s urban families’ annual income stood at 640,303,000 rials or $5,631 (the highest among Iranian provinces) and West Azarbaijan’s households’ income hovered around 264,711,000 rials or $2,328 (the lowest among Iranian provinces) last year.

Rural Households

The average expenditure of rural households stood at 214,472,000 rials ($1,886) last year (20% more compared with the year before), of which 24,120,000 rials ($212) or 11.25% constituted healthcare expenses.

The average yearly income of rural households was 233,114,000 rials ($2,050) that show a 15.5% increase compared to the previous year.

Food and tobacco costs constituted 37% or 80,246,000 rials ($705) and non-food costs amounted to 63% or 134,226,000 rials ($1,180) of the total rural families’ expenses.

Flour, noodle, grains and bread accounted for 24% (the biggest share) of the overall rural households’ expenditures in the “food and tobacco” category, whereas housing and fuel costs had the lion’s share in non-food category with 28%.

The personal hygiene and treatment costs for rural household accounted for 8.71% or 18,677,000 rials ($164) and those of social and medical insurances constituted 2.54% or 5,443,000 rials ($48) of total expenditure of rural families.

Healthcare expenditure of rural households who fall in the 10th income decile and those who were in the first income decile stood at 85,794,000 rials ($754) and 3,711,000 rials ($32), respectively. In other words, rural households in the top 10th of the income distribution spent 18 times as much as those in the poorest decile on healthcare costs.

Healthcare expenditure accounted for 16% of total expenses of families living in rural areas of Golestan province last year–the highest among Iranian provinces. These costs constituted 4.74% of total expenditure of households living in the rural areas of Sistan-Baluchestan (the smallest share among Iranian provinces.)

According to the Statistical Center of Iran, the overall CPI (using the Iranian year to March 2017 as the base year) stood at 164.3 in the closing month of the last Iranian year (Feb. 20-March 21, 2019), indicating a 3.9% rise compared with the previous month.

Consumer inflation registered a year-on-year increase of 47.5% in the month under review compared with the similar month of last year.

SCI put last year's inflation for urban and rural households at 26.6% and 28.1% respectively.

The index registered a year-on-year increase of 46.6% for urban areas and 52.7% for rural areas compared with the similar month of last year.

The overall CPI reached 163.3 for urban households and 170.3 for rural households, indicating an increase of 3.8% for urban areas and 4.5% for rural areas compared with the previous month.